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Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour, Job 603 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Assembly Department 71 10 Sanding Department Machine hours used The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1500. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? O $895 O $700 $635 Ⓒ$420

Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour, Job 603 used the following direct labor hours and machine hours in the two departments: Actual results Direct labor hours used Assembly Department 71 10 Sanding Department Machine hours used The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1500. How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? O $895 O $700 $635 Ⓒ$420

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour, Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department Actual results Direct labor hours used Machine hours used 10 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1500. $635 $420 How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? $895 O $700
Transcribed Image Text:Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour, Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department Actual results Direct labor hours used Machine hours used 10 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 603 is $1500. $635 $420 How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates? $895 O $700
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